Indian Tax Procedure Migration from TAXINJ to TAXINN.

Tax Migration as a prequisition to legal change GST.

1. The TAXINJ tax procedure is currently in use. What are the prerequisite changes that need to be done for GST?

Ans: For GST regime solution adoption, TAXINN (condition based tax procedure) is a prerequisite, and for customers who are currently using TAXINJ, it is mandatory to migrate from TAXINJ (formula based tax procedure) to TAXINN.

3. For Tax procedure migration what would be the Minimum Support Pack level required?

Ans: For Tax procedure migration, there is no Minimum Support Pack level required. Only for GST adoption this is relevant. One may need to implement multiple SAP s if the system belongs to a very low Support Package. This is similar to the corrections that are done in component 'SAP_APPL'. that a significant amount of time will be consumed by this activity. Thus, one should plan the activity accordingly.

4. Why J1IMGPO and J1IMGCN, the two new transaction codes are missing in my system but are available in the migration solution?

Ans. Read SAP 2153807 and perform the manual steps in the Manual_steps_for_Tcode_creation.docx attachment.

5. In the TAXINN tax procedure, which existing TAXINJ condition types and posting keys can be used?

Ans: Yes, read to 'TAXINJ_TAXINN_Soln.pdf' attachment of SAP 2014164.

6. In TAXINN for direct FI transactions (FB01, FB60, FB70 etc.) posting, do we need to create new tax codes?

Ans: Yes. Create new tax codes in TAXINN for direct FI transactions. However, you can use the same names as in TAXINJ.

7. For already closed PO line items, will the migration program update the new tax code in MM procurement?

Ans: No. The ones with delivery completed indicator marked are the closed PO line items. For the entire order quantity, GR and invoice is done. Only for open line items of the open documents, the new tax code is updated by the migration program.

8. For closed TAXINJ purchase order line items, in what way the tax details are displayed?

Ans: Refer to SAP 2161911.

9. How do vendor invoices which are posted in TAXINJ are reversed?

Ans: Refer to SAP 2161911.

10. Can reports for multiple plants and multiple tax code selections be executed?

Ans: Yes (However, based on the open documents volume and the capacity of the system hardware, the execution time differs).

11. Can the list of documents which are going to be fetched and updated with the help of the report programs be viewed?

Ans: Yes. To the intermediate tables (J_1ITCPOUPD, J_1ITCSAUPD, and J_1ITCCNUPD), the system first downloads the purchase order details and then with tax codes updates these purchase orders.

12. Can the list of documents which are updated via the report programs be obtained?

Ans. Table J_1ITCJCUPDATE gives you the list of updated documents.

13. While running the report few of the documents are not updated. How these documents can be identified along with the errors that are responsible for it?

Ans. You can get the error log by executing the transaction SLG2 for the object J1ITAXUPDLOG.

14. Will the length of tax code digits get increased in TAXINN?

Ans. No (they continue to remain as 2-digit codes)

15. How TAXINJ to TAXINN tax procedure migration can be implemented?

Ans: This provides solution for consultation. The solution released by SAP can be referred to, the system landscape and the processes can be validated in detail, and actions can be decided accordingly at the end.

16. How do I proceed if I get Error FF713 "TaxCode XX does not exist for TAXINN"?

Ans: A. It should be ensured that the following steps are carried out –

1. In your access sequence one above the last step, the condition table A003 should be inserted. IT SHOULD NOT BE MARKED AS EXCLUSIVE.2. A new set of TAX codes should be created if the same for FI transactions need to be used only. Then via FTXP the entries in A003 (Condition access sequence MWST) should be maintained. In FI, one cannot use Pure MM purpose taxcodes (Condition record maintained via FV11 and access sequence without A003), because table A003 is unavailable.3. Maintain condition records for the tax codes using the table A003 with the appropriate tax percentage, when using TAXINN and table A003, via FV11. Zero percentage can also be the result.4. Make sure to assign the tax code to company code when using CIN, in the below path:

Under CIN customization for "Maintain Excise Defaults", one should ensure that the same is maintained for the TAXINN tax procedure. Go to FTXP and create the same tax code if the problem persists. This will resolve the issue.

5. The conditions must be correctly and uniquely classified when using CIN, in table J_1IEXCDEFN. Since multiple conditions cannot have the same name; therefore, the condition names must be unique.

17. How mass update of tax codes (EINE-MWSKZ) in Vendor Purchase Info Record should be carried out?

Ans: The transaction ‘MASS’ for the Object Type ‘BUS3003’ should be executed and the field ‘EINE-MWSKZ’ from ‘Fields’ tab should be chosen. Build a custom program or batch program at your end (consulting) when updating/replacing multiple existing TAXINJ tax codes for multiple Info Rec, based on the mapping table ‘J_1ITCJCMAP’.

18. The transaction J1IMGPO is executed and extraction is selected. The following error "Item category does not exist (Please correct) Message no. ME719" is displayed by the system. In what way one should proceed?

Ans: Maintain the item category of the relevant Purchase Document line item. This error prevents inconsistent extraction of the Purchase Document line item.

19. Before performing the tax migration, are there any requirements of sanity checks?

Ans: Yes, as consulting activity is based on the business model; this should be taken care of. Cleanup of documents and data which are not in frequent use can be carried out. For e.g., the Order Document line items(PO/SO/SA..) which are not in use or are rarely used can be checked and closed, also the unused tax codes should be found and actions should be taken where these tax codes are used on the order lines and subsequence documents. The volume of line item that needs to be migrated will be reduced by these sanity checks.

20. When using jurisdiction codes in TAXINJ and after the tax migration procedure is carried out, the item level taxes in the Invoice tab cannot be viewed for closed PO line items in TAXINJ. To view the item level taxes what should be done?

Ans. After the introduction of VAT (April 2005), jurisdiction codes are no longer supported in India taxes. You need to take care of the same with the help of consulting. You may refer to SAP 2235217 for details on certain jurisdiction code cases.

21. Is it possible to do the TAXINN configuration in TAXINJ procedure itself, if I am currently using a limited number of tax codes?

Ans: By changing the access sequence of existing condition types in TAXINJ, one can achieve the migration. Other India related settings (e.g., Classify Condition Types) related to TAXINN should be carried out. At your end you should test the same thoroughly. As we are addressing the core concern that TAXINJ has fewer tax codes left out; therefore, SAP is not suggesting this methodology.

22. For all condition types based on my business need, how do I decide and configure the condition record?

Ans. This is pure consulting and should be taken care at your end.

23. While running the PO/Contract update program, I get a performance issue. How shall this be managed?

Ans: Without causing any inconsistency in the update activity, you should parallelize this activity as this is consulting. With the help from consulting, customers (enough volume of open lines) have successfully migrated.

24. For tax migration, how the cut over strategy be planned?

Ans: This is a consulting activity and you have to plan the same based on your business/organizational structure.

Ans: J1ID rate determination is not supported in GST as TAXINJ is not supported in GST.

26. I display the PO lines which are closed in TAXINJ after carrying out the migration. The new access sequence(e.g., JST1, JTAX..) which I have assigned to the condition type(s) as part of migration are getting displayed. What could be possible reason for this?

Ans: Yes, for TAXINJ PO lines this is the behavior (To SAP access sequence name is just technical and internal). The exit logic takes care of the calculation based on the old access sequence (e.g., MWST) which has been implemented and is required for you legally.

27. While executing the MRNB transaction as well as other MRxxx transactions (Package ‘MRM’), I get the FICORE704 error. How shall I proceed with this error?

Ans: As system is unable to find the TAXINJ tax codes, this error is received. For transactions like MR8M/PO display (refer SAP 2161911), you have to refer sample codes provided and with the help of consulting take care of the same in MRNB also.

28. The F.12 (report S_ALR_87012357) transaction has been executed for documents posted in the TAXINJ procedure. The following error has been displayed by the system: Combination of calculation procedure XXXXXX/ tax code XX missing. What shall I do?

Ans: Refer the attachment ‘Advance Return for Tax on Sales or Purchases’ provided in SAP 2161911.

29. For documents posted in "TAXINJ' procedure, I have executed other tax reports for India (Transaction code: S_ALR_87xxx....) and the error 'Combination of calculation procedure XXXXX/ tax code XX missing’ has been received. What shall I do?

Ans: The attachment ‘Advance Return for Tax on Sales or Purchases’ should be referred to which has been provided in SAP 2161911 and to carry out the changes for all standard Tax Reports take the help of consulting.

30. When the transaction J1IMGPO for SA having time independent conditions is executed, the SA with new tax code is not updated by the system. Also, you can receive an error message “Scheduling agreements with time-independent conditions are not supported” in case tax codes are different in TAXINJ and TAXINN in the error log. What shall I do?

Ans: In the report BAPI_SAG_CHANGE (and BAPI_SAG_CREATE) is used, to treat scheduling agreements with time-dependent conditions J_1I_TAXUPDATE_PO is used. This kind of scheduling agreements cannot be processed as document conditions are not supported. As per SAP 1046794 this is a missing functionality in standard. Either with same tax codes (based on usage) or with the help of a custom development to change taxcodes, this can be taken care of.

31. When the Purchase orders are displayed after the migration to TAXINN has been done and when TAXINJ tax codes nomenclature (e.g., V1:V1) is used in TAXINN wrong conditions get activated. What shall I do?

Ans: As the condition types’ access sequence are getting successful from A003 table (TAXINJ ones), this issue happens. This is because, for the condition types you can still use Tax Classification access. In case of using the same nomenclature the right tax codes should be chosen, so that it does not trigger A003 access. A003 record should not be deleted as the display of Tax value for TAXINJ closed lines will be impacted. Due to limited number of tax codes left out in TAXINJ, if the A003 record needs to be deleted as a must, ensure that A003 condition records are not required for PO display or historical auditing purposes at your end. With the help of consulting or at your end carefully these activities should be taken care.

32. Can tax migration and Support Package upgrade activities be clubbed at the same time?

Ans: This decision needs to be taken at your end based on your business and system landscape.

33. How TAXINJ can be differentiated from TAXINN?

Ans: Calculations are driven with tax codes mostly and TAXINJ is formula based. TAXINN uses multilevel access sequences and is condition based. To calculate taxes in TAXINN, tax codes are not the unique driver.

34. Will the GST solution support TAXINN which has been copied and implemented in customer name space (E.g., ZTAXIN)?

Ans: Yes, in standard product solutions in India taxes, name of the tax procedure is not hardcoded anywhere. Like TAXINN, the new tax procedure should be condition based. For other conflicts you should test this at your end.

35. What happens if I reverse an IV and GRN based on TAXINJ after migrating to TAXINN?

Ans: Reopen the Purchase Order (PO). Now, update the relevant tax codes manually or by using the migration program (run for specific PO lines) to treat these PO lines in TAXINN.

36. How does the 'Test Run', 'Extract Documents', and the 'Update Document' options work in the J1IMGPO and J1IMGCN migration reports? What purpose does each of these options serve?

Ans: Regarding these options below find points.

1. Test Run:

a) In the selection screen, Test Run option is available which displays the documents getting impacted.b) With extract document option test run - All open documents which will be extracted are displayed.c) With Update Documents Test run - All documents which will be updated with new tax codes are displayed.

2. Extract Documents:

a) The open Purchase Orders/Scheduling Agreement and Contracts and interim tables (Contracts- J_1ITCCNUPD ;; PO- J_1ITCPOUPD ;; SA- J_1ITCSAUPD) are fetched and are updated.b) The program J_1I_RM06EW00 (Copy of standard report RM06EW00) should be studied for open PO/SA selection logic;; The program J_1I_RM06EM00 (Copy of standard report RM06EM00) should be studied for open contract selection logic. Delivery completed indicator marked are the closed PO line items. For the entire order quantity GR and invoice is done.

3. Update Documents:

a) Based on option selected from the selection screen, Purchase Order/Scheduling Agreement/Contracts are updated by this option. From respective interim tables (Contracts- J_1ITCCNUPD ;; PO- J_1ITCPOUPD SA- J_1ITCSAUPD) documents are selectedb) In table ‘J_1ITCJCUPDATE’ updated history is availablec) The availability of standard application error log (SLGO/SLG1)

38. While updating PO/SA/Contracts via SAP transactions J1IMGPO and J1IMGCN, I get many issues related to order documents. How do hints can be received?

Ans: Refer to FAQ SAP s given below and related SAP s in MM-PUR-* component. These s explain about BAPI(as J1IMGPO, J1IMGCN use BAPi for update Order docs) and Tax handling in Purchasing.

39. Other than tax code (E.g., MM Pricing determinatation, master data fields, quantity, values...), I noticed that some more fields are getting changed when I update order documents (PO/SA/contracts) via transaction J1IMGPO and J1IMGCN

Ans: During migration period check that these parameters are not changed at your end 'BAPI_PO_CHANGE’ and ‘BAPI_SAG_CHANGE’ (used by J1IMGPO and J1IMGCN) are the standard Purchasing BAPis, to front end transaction (e.,g ME22*) work similarly, and according to your system configuration, most of the validations and changes will happen.

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